Morning guys. How many of you followed the ECB and Draghi yesterday? Did the ECB meet your expectations? We had a market coverage yesterday with our take on of this event, if you were busy and couldn´t follow the forex market.
The ECB held their monthly meeting yesterday and they didn´t meet the market expectations. The forex market was expecting an extension of the monetary easing programme but they didn´t promise such a thing, although the chances that they do so in October are pretty high. President Draghi also mentioned in his press conference that the correct assets to purchase under the QE programme are becoming scarce.
This was the most relaxed or the least dovish we have seen Draghi in a while. But just when he decided not to be that fearmonger for once, the economic data from the Eurozone lets him down. The growth forecasts remained almost unchanged yesterday, but only a day later the French industrial production declined by 0.6%, the government budget balance deficit grew by nearly 20 billion Euros and the German trade balance surplus shrank by 2 billion.
It´s tough being a central banker nowadays. When Yellen tries to be hawkish for the first time since she sat on the main chair at the FED the market goes the other way and the economic data disappoints. The same thing happened with Draghi yesterday. Have the mob at the ECB changed their minds just a day later? Watch out for comments from the mob members today.